U.S. Treasury auctions $48 billion of two-year notes at a high yield of 5.085%

<ul><li>High Yield: The prior auction came in at 5.024% with a six-auction average of 5.085%.</li><li>WI level at the time of auction was 5.085%</li><li>Tail: 0.0 tail Tail last was at -0.4bps with a six-auction average of -0.1bps.</li><li>Bid-to-Cover: 2.73X. The bid to cover was previously at 2.94x with a six-auction average of 3.13x.</li><li>Dealers: 13.99%. The dealer participation was previously at 15.0% with a six-auction average of 16.7%.</li><li>Directs: 20.99% . The level of Directs (domestic buyers) was previously at 20.0% with a six-auction average of 19.8%.</li><li>Indirects: 65.02% The level of indirect (overseas buyers) was previously at 65.0% with a six-auction average of 63.5%.</li></ul><p>The Auction Grade: B-</p><p>The bid to cover was less than the 6 month average. Directs and Indirects were a little better than the 6-month average.</p>

This article was written by Greg Michalowski at www.forexlive.com.